Why did wall street crash in 1929?

In 1929, in that respect was a complete lack of confidence in the U.S. economy, make iting to many, many investors selling their shares. This is know as the w every street crash. This was ca utilise by a number of short and big causes, of which I will elaborate on later.Firstly, we must consider the old policy of tariffs in Europe. This is very important because of the incident that Europeans could non afford u.s. goods, as the tariffs for the purchasing of u.s. goods was too much for Europeans to support. A nonher land the Europeans could non afford to buy u.s. goods is because well-nigh European countries had hefty war loans they had to pay rump to America, which they were struggling to pay back as it was.There was widespread scantness in the u.s.a. in the 1920s. almost 50% of American households had an average income of under $2000 p.a. this purchased solitary(prenominal) the bare essentials in life. The worst run into were the black commonwealth and new immigrants , who were exceedingly discriminated against. Many black people knowd in p all overty in rural cities in america. New immigrants to america were given the terminal paid jobs, as Americans were highly disadvantage against Europeans, plus they would work for anything just to live in america. With the collapse of trade unionism, there was little lee commission for workers to bargain for improve wages.The two reasons previously mentioned, let to overproduction of goods in the u.s.a. as american citizens could not afford to buy any u.s. goods as they were in dreadful poverty. People overseas could not buy u.s. goods as it would be too expensive for Europeans as the u.s.a. had enforce tariffs which taxed the import/export of u.s. goods. The small tote up of people that could afford the products had already bought on the dot what they had wanted. There were too many goods, and not enough people to buy them.In the early 1920s, the american buy in foodstuff was doing fantastically because of the boom in argumentation created by the u.s. internal market. But, however in the mid-20s the speculation of stocks began to increase. This is to say that people were invest in a company further in the hope of share prices rising. As more and more people invested this way share prices rose out of all proportion to their real value.Since the u.s.a. had set up its internal market it had been easy for americans to fasten on money on credit. Small investors used this borrowed money to buy stocks(on the circumference) small investors knew that if they lost this money they would not be able to pay this back. If the banks had not been paid back by the creditors, they would not have the money to loan to people trying to buy on the edge, and so many banks close.In the dip the experts of stock market began selling their stock as they could see that share prices were over valued. This panicked small investors, and they began selling madly. This lead to banks losing money fr om the loss of shares. This in tip over lead to the collapse of the stock market. This is the argue street crash